The implication of the rout today is that SDL is now a long-term...

The implication of the rout today is that SDL is now a long-term investment. The Board erred substantially in the transaction with Hanlong. And the price is now being paid by the shareholders who had their shares effectively locked up for nearly two years waiting for the transaction to be completed.

Those who blame investors for holding on too long ignore the clear red flags signalled to the Board over the two years, suggesting that the transaction should have been terminated: failed deadlines, price manipulation, price revisions, change of terms, in addition to the evidence of misgovernance. The Board is accountable.

The Board must now perform due diliegence, and not succumb to the artificial price manipulation of a temporary stock price. The takeover price must be determined by an independent long-term valuation, not by an opportunistic valuation based on opportunistic buying.

Shareholders having waited two years do not deserve to be sold out again. We can afford to wait until the right buyer emerges at the right price.